Floron Food Services Limited, based in Edmonton, Alberta, is pleased to announce its results for the nine month period ending March 31, 2001. These results reflect nine months of operations for Floron and just over five months of operations for Floron’s wholly-owned subsidiary, Hygaard Fine Foods Limited, acquired effective October 20, 2000.

Consolidated sales for the nine months ended March 31, 2001 increased 54% to $20.5 million compared to $13.3 million in 2000. Floron’s sales alone increased 21% during that period to $16.1 million; the balance of the increase comes from the acquisition of Hygaard. Floron’s increase in sales is due to the opening of several new Boston Pizza restaurants in Floron’s distribution area, as well as higher sales to existing customers.

Consolidated sales for the three months ended March 31, 2001 are $8.4 million, 22% higher than second quarter sales of $6.9 million. Both Floron and Hygaard showed increased sales in the third quarter.

For the nine months ended March 31, consolidated net earnings before depreciation and amortization, debt service costs and income taxes have more than doubled to $1,328,215 ($0.34 per share) in 2001 from $47,195 ($0.17 per share) in 2000. Floron contributed $797,213, a 23% rise over last year; the balance came from Hygaard’s earnings.

For the three months ended March 31, 2001, net earnings before depreciation and amortization, debt service costs and income taxes were $630,957 ($309,955 for Floron and $321,002 for Hygaard). “Hygaard has proven to be a highly successful acquisition for Floron, contributing a significant increase in our operating cash flow. We are very pleased with the results thus far,” stated Ronald J. Coyle, Chairman of Floron.

Consolidated net earnings for the nine month period were $368,956 ($0.09 per share) for 2001 compared to $334,818 ($0.08 per share) for 2000. Increased interest and depreciation and amortization expenses related to the acquisition of Hygaard have caused the increase in net earnings to be lower than the increase in cash flow.

Floron Food Services Limited specializes in the food manufacturing and distribution business. Floron is the exclusive manufacturer of meat sauce for all Boston Pizza franchises in North America. It is also the distributor for all required products for Boston Pizza franchises in northern Alberta and the Northwest Territories. In October, 2000, Floron diversified by purchasing 100% of Hygaard Fine Foods Ltd.

Hygaard is based in Sherwood Park, Alberta and has over twenty-five years in the business of manufacturing sandwich products for the convenience food business. It has enjoyed steady sales growth and is now a significant producer in the Western Canadian marketplace. Both Hygaard and Floron operate out of Agriculture Canada and H.A.C.C.P. approved facilities. H.A.C.C.P. approval is required to be able to ship manufactured food products into the United States.